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tv   Power Lunch  CNBC  December 6, 2012 1:00pm-2:00pm EST

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but i'll pick procter & gamble. i like the restructuring story. >> fcco. >> dennis. >> i am buying stocks, selling crude once against another an it is work >> big day tomorrow. have a jobs report. don't forget about that. we'll obviously be following the apple story at 5:00 tonight on "fast money" at 5:00. see what the stock does for the remainder of the day. we'll see you tomorrow. "power lunch" begins right now. "power lunch" is all over it. apple shares, that's what we're all over this hour. they are rebounding after their big sell-off of earlier this week. the ceo, tim cook, speaking exclusively with nbc news' brian williams. strength in america? maybe manufacturing here. apple tv living in the legacy of steve jobs. we're going to take a very close look on what is next for
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america's favorite gadgetmaker. speaking of gadgets, rivalry research in motion, offering training programs and promotions for its upcoming blackberry 10. it's targeted corporations. bold move or maybe a desperate one? any move might be welcome down here. democrats want tax hikes on the rich. republicans want entitlement cuts. we've heard this before, haven't we? what do average americans want to see in a fiscal cliff solution. we've got the exclusive results of our exclusive cnbc all-america economic survey. now to everybody's all-american, sue herera standing by at the nyse. >> you're sweet, ty. thanks. we're a little bit on the downside. we really kind of retraced a little bit on the dow jones industrial average. previous to this we were solidly in the green in all three of the major market indices. the dow now down 14 1/2 points. nasdaq up eight. the s&p is down just a fraction. of course we are also watching apple on the back of yesterday's drop. the stock today is traded up
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$4.82. that's just under a percentage move to the plus side. it's rebounding, still at bear market territory, however. it has lost over $50 billion in market cap over the past few days alone. our bob pisani joins me here on the floor of the nyse. what are you hearing from traders? the market is drifting a little bit. the focus is on apple. there seems to be a little bit of enthusiasm that it can come back to the up side. >> we were up a little while ago, now we're down. i think what happened, the senate majority leader harry reid came out with a couple of comments. he said any program, any deal that's out there must include a stimulus component -- really? a stimulus component? he said rates have to increase to 39.6% as part of any deal. the dow drifted lower on that because people were arguing you should have a 37% as a compromise on the tax rates. >> mr. geithner yesterday when speaking exclusively to steve leisman seemed to really avoid that 39% number. that encouraged a lot of people
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thinking that perhaps that is a flexible number. >> let's hope it is. but the senate majority leader says -- specifically said 39.6. i think that's specifically the reason we took a little bit of a dive a while ago. either side are positive or negative. but i want to note, tech stocks are doing a little bit better overall. the s&p tech index has been doing a little bit better recently, particularly hardware names. you look at some of the big names in the computer space here. take a look at lexmark, dell, seagate, western digital. storage names are up. you were mentioning apple. huge volume. 30 million shares of apple. that's a full day's supply of apple already. of course we're hearing on rock center tonight, brian williams, tim cook telling him they're going to spend $100 million to do some mac production in the united states. talk more about that later. perfect segue because that's
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what ty's going to talk about it. >> apple ceo's tim cook's announcement saying apple will bring back some mac production to the united states. it was part after wide ranging interview we'll break down with our reporters and analysts. we will look at the logistics of his proposal. tim cook as a leader and where the stock, which has been suffering in the past couple of days, most especially past couple of months really, but first let's listen to nbc news anchor brian williams' interview with apple's ceo, tim cook, in a rock center exclusive. >> why can't you be a made in america company? >> you know, this iphone, as a matter of fact, the engine in here is made in america. and not only are the engines in here made in america, but engines are made in america and are exported. the glass on this phone is made in kentucky. so we've been working for years on doing more and more in the united states. next year we will do one of our
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exirsing mac lines in the united states. >> let's say our constitution was a little different and barack obama called you in tomorrow and said, get everybody out of china and do whatever you have to do, make these, make everything you make in the united states. what would that do to the price of this device? >> i honestly -- it's not so much about price, it's about the skills, et cetera. over time there are skills that are associated with manufacturing that have left the u.s. not necessarily people but the education stops producing them. >> that's sad. how do we get that back? sbl well, it is a concerted effort to get them back. with this project that i've talked about where we will do a mac in the united states next year? i think this is a really good another step for us. the consumer electronics world was really never here. so it is not a matter of bringing it back, it is a matter of starting it here. >> good morning. thanks for joining us here.
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>> reporter: while steve jobs liked to avoid the spotlight, he also thrived on it. it was as if he was selling products that were pieces of his own soul. he was inventor, pitchman and new wave pid piper all in one. big boss coming through. big boss, people. look alive. >> reporter: tim cook is just a different guy. while he believes in the almighty product just as much. >> how are you not steve jobs? >> in many ways. one of the things he did for me that removed a gigantic burden that would have normally existed is he told me on a couple of occasions before he passed away to never question what he would have done. never ask the question what steve would do, to just do what's right. >> just do what's right. pretty good mantra there, brian, joining us from new york. why did he -- or did mr. cook say, brian, why he wants to bring mac production back to the u.s.? is it really just because he
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thinks it's the right thing to do or because it's economical now or what? >> well, he didn't speak to motive but i am guessing, tyler, given all the talk about china, given all the china problems they've had, working conditions, salaries, his forced trip over there, i'm guessing they think this would and good idea. they talk a lot about skilled labor over here and not educating the kinds of workers they need. but it's just one of the points he kind of scatters through this first real interview which was months upon months in the making, as i need not tell you. >> yes, indeed. sometimes dealing with apple, it takes a long, long time to get through. but once you do, they're very forthcoming. brian, did he speak at all to -- i don't want to use the word burden but in some ways it is a burden. they don't produce a lot of products every year but they do produce products that they consider revolutionary, that changes for the greater good the
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american society and the way business is done. that's a pretty heavy burden and mantel to carry for a company and for a ceo. >> it is. americans all around the world, when people get a little harsh on what happened to the american economy, what happened to american manufacturing, everyone says, well, you know, we have apple, it used to be, well, we have ford motor. and we still do, thankfully. i think there's two companies where we take their brand name and we go there. and one is sony and the trajectory of sony over the years. and that's an interesting exchange. and the other is samsung and i go right at him with the full weight and power of this new samsung ad campaign by bobby fairly, the hollywood director behind "dumb and dumber" and "something about mary." you've seen it, it is blistering, very sarcastic and
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very satirical. he talks about the rivalry and pressure between the two. >> and very concerned, mr. cook, always about copycatting by companies like samdung with whom they've had a longstanding patent infringement battle. what did he say, if anything, about apple tv, the next device that many people think they're about to bring out? >> tyler, he laid out the entire plan and showed me all the mock-ups and i'd love to be able to share just some of what i know. but he didn't say anything. he indicated the television was the next frontier. as you heard, he thinks it's been a lagging indicator of technology. mind you, i just had to jump out after cab and run seven blocks in midtown manhattan because a traffic light froze in the red position and that flummoxes about a dozen new york city police officers. i ran alongside -- might as well have been 1880.
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here we are talking about apple tv. at some point in technology, we got to even up the technology gap. >> thanks so much for being with us, brian. can you see brian's entire exclusive interview with tim cook on rock center, 10:00 p.m. eastern time on nbc. >> can't wait. let's dig a little deeper with our all-star apple panel right now. apple supply chain expert brian blair is with us. he's with wedge partners. cnbc's jon fortt is here. and today's "power lunch" contributor is jim iuorio. jim, i'm going to start with you, if i could. how do you feel about apple? i'm starting with you really because the rebound in the stock, everybody's talking about it down here. what do you make of that? >> as a company i feel great about apple but i have to push that aside because we're talking about the stock price here. even if we correctly identified why apple was trading lower for the last couple weeks, as strictly a tax thing, that doesn't mean that that reason can't morph into something else. think of it this way. we talk about the stock market and say because this market is
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underinvested in lack of participation, it wouldn't have a wave to push lower into very bear market trend. well apple is the opposite of that. apple has a o ton of people in it a long time, racked up a lot of capital gains. i still think once this finds somewhat of a base there is a reason to buy it towards the end of the year when tax selling is done. but i think it should be on the radar screen. if it settled below 50 $$504, w is a long way away, i'd be very worried. >> what manufacturing mcintosh computers in the united states will be affected and how will it affect, at all, apple's legendary pension for secrecy? >> i think that the first thing is it is going to be wild to see a computer that is stamped with made in america. don't think we've ever seen that before so i think it is very significant that they're willing to just go in the opposite direction of everybody else is manufacturing computers. i think it will be great for just a perception of what they're trying to do for america. brian williams earlier talked
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about job creation. this is going to bring some jobs to america. it is important to note it is not just the assembly of the mac they're going to do. they're going to produce it here so i think it will give a little bit of that made in america pride to an industry that has never seen it before. >> john, think apple is saying they're taking the lead in bringing jobs back to america and manufacturing here in america. but lenovo has done that already. i venture they'd make the claim that apple is following them. what do you think? >> that's a fair point. i think what it comes down to really is that this is apple. this is the biggest american technology brand, the -- one of the world'sst and the volumes are likely to get bigger over time. >> jon? you want to follow on that? >> sure. i'd point out near apple for lenovo has done this yet. they've also promised to bring manufacturing to a north carolina facility, both laptops and desktops in 2013.
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apple saying they're going to do that in 2013. google has been doing this with a tv streaming box that they brought out earlier this year. that isn't working out so well for them but google is also trying to do this. this isn't just a apple thing. a number of companies trying to do some manufacturing here. apple last quarter made about 50 million things. they are a huge manufacturer. just under 1 million of those were desktop macs. so we're talking about a small sliver of what apple actually makes. >> jon, i wonder, how you would characterize the change in culture from steve jobs to tim cook. i might characterize it this way. mr. cook feels like velvet glove, iron fist. mr. jobs was iron glove, iron fist. >> well, i'm not sure which glove hits harder. you take a look at some of the executive shuffling that we've seen under the tim cook regime. that's significant. we didn't see steve jobs do
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things quite in that way so he's not afraid to make changes. he's also done stuff with a dividend that we've seen. he's done things with apple, also being more open with wall street. so a few things that he's done also in charitable giving that are different. >> i would chime in and add, this is definitely a more human apple. there's transparency over the supply chain. there are people behind that. you mention the charitable giving. jobs did not do that. i look at this as a kinder, gentler, more human apple. >> we talk about how great it is that they're going to manufacture in america. the market's not going to love that on its surface because they don't want them making decisions based on goodwill instead of making decisions based on dollars and cents. so that might be great and might increase demand down the road but i'm not sure it is going to be a great thing. >> gentlemen, we have to leave it there. thank you for being with us on this very interesting discussion of apple. brian williams' interview tonight at 10:00 on rock center.
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apple plans on moving some of ifts production here to the u.s. what are your thoughts? go to finance.yahoo.com. we'll bring you the results of our poll later on "power lunch." as you know, apple shares are rebounding today but we're going to broaden it out a little bit, tell you what other tech stocks are moving big on the nasdaq right now. plus, we're back to capitol hill. the negotiations still going on in washington. we have the latest and we'll speak with representative jack kingston, republican from georgia. he's a member of the house appropriations committee. we'll find out where he is willing to compromise as those negotiations go on. how they'll live tomorrow. for more than 116 years, ameriprise financial has worked for their clients' futures. helping millions of americans retire on their terms. when they want. where they want. doing what they want. ameriprise. the strength of a leader in retirement planning. the heart of 10,000 advisors working with you one-to-one. together for your future.
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25 days and counting until america dives off that fiscal cliff. in just a few minutes, the president makes his point of the day by visiting a middle class family to talk about tax cuts. and on the hill, some members of congress left d.c. yesterday. we showed you the footage. they're on a long weekend. but key players are still there trying to hammer out a deal. eamon javers is on capitol hill with the latest on the negotiations for us. hi, eamon. >> hi, sue. just within the past couple of minutes here we've had a very high-stakes scuffle on the senate floor over the president's proposal to have unilateral authority to raise the nation's debt ceiling all on his own for the most part. mitch mcconnell, the republican leader, offered up the opportunity for the senate to have a vote on that. democrats said they would love to take him up on that.
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they say they have the votes to pass it at a 50-vote threshold. just within the past couple of seconds, mcconnell has said, no, in fact what he wants to see is a 60-vote threshold for that. it looks like that's not going to happen today. it almost happened just within the past couple of minutes but now with a 60-vote threshold the democrats don't have the vote to pass the new authority for the president to raise the nation's debt ceiling on his own. so not happening today but it gives you a sense of the fainting going on in the capitol as both parties jockey for position. earlier today mitch mcconnell was on the senate floor continuing to hammer away at president obama. >> what the president's really interested in, as we learned just yesterday, is getting as much taxpayer money as he can first by raising taxes on small business that he believes are making too much money, and then on everybody else. >> it does feel like there is some negotiating going on behind the scenes here. we are told that president obama
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and speaker john boehner on the republican side of the capitol had a conference call yesterday about 20, 28 minutes in length. we don't know what was said. that's probably a good sign they are not leaking the contents of that call. that's a sign that there is some negotiation going on. something is happening behind the scenes but we just don't know what it is right now. back to you. >> eamon javers, thank you very much. what can be done to break the stalemate in washington? representative jack kingston is a republican from georgia, member of the house appropriations committee. welcome, congressman. good to have you with us. >> thank you, tyler. >> we had the images yesterday of congress leaving for a long weekend. i have to say that it struck an awful lot of us as very poor sort of pr, very bad optics, if you want to use that term. you're still there in washington. why? and what do you think about the fact that congress went home? >> well, i'm actually doing some committee work but i will say this, that this debate is both inside and outside of the town. outside in that the politics are
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obviously very, very important. i would suggest the president is letting the politics lead the negotiation far more than the policy. but when members go home, they have an opportunity to meet with small businesses, as the president is in fact doing today and they can go back and talk to their constituents. one of the things that i find when i talk to my constituents, they are saying, you know what? i think you should be flexible on the tax increase question but you need to be extremely firm on the spending cut. i think that's where the whole problem is right now. we're hearing so much from the president on let's increase taxes on small businesses and the wealthy but we don't hear anything solid in terms of what i'm willing to do in exchange to reduce government spending. >> i don't want to belabor the point on people going home but i assume an awful lot of members who have gone home are hearing from their constituents, go back and go to work and solve the problem here, rise above the partisan rancor. >> yes. >> the congress was on a holiday for thanksgiving not that long ago.
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let's talk though about three areas of real critical importance in this discussion. one is what would you do with respect to reducing the growth of spending in medicare? what specific steps are you willing to put on the table? >> well, let me give you something that -- it's very sensitive. but end of life is where 70% of the medicare dollars go, and yet we have a society where most people will not do a living will. i did a living will with my 90-year-old dad. it was very difficult. he died shortly after. but he told me, hey, do not keep me on life support, it costs a lot of money, plus i don't want it. if do you it, i'll come back and haunt you. but it was a good process. i see as a member of congress so many people who are estranged from their parents, they've moved away, had a falling out 20 years ago but they're the ones that say do whatever you can to keep mom and dad alive until i can get back to town. you know, if you have a living will, you're going to save lots
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of money. i think one of the potential discussion points is should we require living wills. that would save a tremendous amount of money in medicare. we can also revisit tort reform because we know frivolous lawsuits crank up the cost of it. to me, another part is something like a medical savings account that would put some deductible in there so that people are motivated to save those third party dollars. that would reduce the cost tremendously. but this is part of the discussion which we are not having and it is a part that we should be having. >> it is a very fascinating point on end of life care which is, as you point out correctly, the biggest single item in the medicare budget. let's talk about two other areas of sensitivity to you. one is military spending. you've got pot stewart in your district, major airbase in your district. >> ifky combine those questions.
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right now, as you know, sequestration is a $1.2 trillion uneven haircut in that there are 107 federal programs that are exempted from it. because of that it disproportionately falls on military. military would have to have another $54 billion cut this year on top of $479 billion cut that's already been agreed upon. another approach would be to say, you know what? don't exempt any of the 107 programs. put everything on the table. if you did that you could have an across-the-board 3% cut. we've done this in the state of georgia. we've been reducing our budget for the past four years 3 cen at a time. and it is a reasonable way to go about it. as you say, the spending is in medicare. it is in health care. it's in military. and it is also in retirement. you can't reduce spending unless you are bold enough to go to that's accounts. but if you put a 3% across the board cut in, then that would --
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to me, go into federal agency and say, can you spend 97 cents instead of $1? that's a reasonable way to do this and it reaches the president's goals and mr. boehner's. >> let me get your 30-second pitch on what i think is a fascinating proposed reform to the tax system. i know you favor a consumption tax. how would it work, why is it better than an income tax? very interesting. >> what we want to do is have a tax code that's miles and miles wide and a half-inch deep, one that everybody participate in, one that is based on how much you spend, not how much that you're saving, and one that captures all the underground economy and closes up those loopholes. i'm outraged when i hear one of my business friends say, hey, i didn't pay any taxes last year because i was able to take advantage of whatever part of the tax code that his lawyer and accountant found out about. that's not good. we need everybody participating. that's why we say, simplify the tax code, get rid of these loopholes. >> congressman kingston, thank
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you very much. apple and zynga among the big nasdaq movers today. we'll tell you which other big movers, winners and losers you need to know about. coming back in two minutes. can i help you? i heard you guys can ship ground for less than the ups store. that's right. i've learned the only way to get a holiday deal is to camp out. you know we've been open all night. is this a trick to get my spot? [ male announcer ] break from the holiday stress.
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[ male announcer ] 'tis the season to discover the kid in all of us. the memories that last, start with the gifts that last. ♪ enjoy free shipping and great values on your holiday shopping from l.l.bean. i have obligations. cuteg tobligations, but obligations.g. i need to rethink the core of my portfolio. what i really need is sleep. introducing the ishares core, building blocks for the heart of your portfolio. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. welcome back to "power lunch." i'm mary thompson with a "market flash." a big move on big volume for mgm
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resorts international. it is just about 8.6% higher because s&p raised its corporate credit rating to b-plus from b-minus because of the company's refinancing effort. shares are moving higher. big volume. 26 million shares changing hands so far today. on average over the last ten days, volume in this stock has averaged 8.6 million shares. to the nasdaq, seema mody is there following big movers. i know there is a lot of focus on apple with the nasdaq composite up almost 13 points. i know there is other movers too. is there we are seeing a nice recovery among tech stocks. apple is the movie that everyone is watching. it lost 6.5% yesterday. today hit a low of $518 a share. but as you can see, we're at $545 so we have come off our lows of the stock though still in bear market territory. broad com is the heavyweight in the semiconductor space, saying its sales have been better than forecasted.
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that's providing a nice lift to tech up about 2%. quick check on social media stocks. facebook down 1% but zynga rallying. that's on news it will soon offer online gambling in the united states. indices have all moved into the positive territory. sharon? >> gold prices closing right now before the $1,700 an ounce level and up about $7 or so. we've seen a little bit after rebound here in gold prices. a nice one in fact today off of that 200-day moving average, the low of the session. that was just under the he 1,69 level. the euro is having a significant impact on the gold price ti particularly when priced in euros. gold prices in euro seeing much further gains than elsewhere in the gold market.
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in terms of gold prices in other currencies, you'll notice that as we look as what's happening here with the eurozone, draghi's comments earlier today, the pressure in the euro certainly causing some buying in the gold market when priced in euros, that seems to be the momentum play of the day. the democrats want to raise taxes on the people they call the rich. republicans want to cut entitlements. what do average americans want to see in a fiscal cliff solution scene of the accident -- exclusive cnbc all america survey next. customer erin swenson bought from us online today.
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we have moved into the green on the dow jones industrial average. not but much but we'll take it. we're up seven points. >> bob pisani is right next to me on set. >> i think we're stable right now. that's the best you could look for. industrials a little bit to the downside, materials a little bit to the downside. i want to note that computer hardware stocks continue to hold up. notice the s&p tech sector is the market leader. i'm not just talking about apple having an update. all the hardware stocks moved up yesterday while and the was on the downside.
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western, sea gate, even dell, they've had very good periods in the last week and a half to two weeks. this sector looks like it's been bottoming. want to mention the airlines. some generally sitting near new highs. southwest is having a great time right now, up several days in a row. united and delta suggested demand is stable. post-sandy now reservations have come back from these airlines. there was a lot of worry of cancellations. >> because a lot of families still have not recovered from that. there was a thought that would be a much longer lag. >> bookings have returned to normal. that's key. >> kenny pulkari is here. there's no recipe. >> we might have to do takeout in the herrera household tonight. it's coming, guys, but it probably won't be here until tomorrow. you just have to wait. the market's kind of waiting, too. it's all on washington. i was impressed with yesterday the market was able to hold on
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to an advance in the face of apple. i think that boded pretty well. >> well, i think that's true but i think apple is a situation and issue unto itself. right? certainly it affects -- you saw what it did to the nasdaq yesterday. but for the broader market i think it does say a lot for the strength of the broader market in terms what have it wants to see. it wants to see the resolution. whether apple goes up or down. if we get a resolution of the fiscal cliff or the sense that we will, i think the market will respond to the up side. >> the market has the federal reserve behind it and the ecb behind it. we saw today not much came out of the ecb. everything, bond yields are down, stock markets, global markets are holding up very, very well right now. >> they're all waiting in this holding pattern, too. >> chinese takeout for dinner tonight. thanks, have a safe trip, kenny. to the bond market, rick
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santelli tracking market. >> we see buying pushing yields down. how far down? look at an intraday of 10s. only down several basis points. if we close here it would be the lowest yield close since the end of august. but it isn't only the 10-year. the 5-year joins into that parade as well. going back to mid-august, can you clearly see very similar pattern. correlations are high. the bund lowest yield since august 31st. now the euro, they're selling today after the press conference. really changed a look at the chart. bringing in some selling on that pattern. last chart, hyg, high-yield etf. clearly it might be an old trade but it is finding new buyers. >> tick-tock, time ticking away. 25 days now until america goes over the fiscal cliff if nothing happens. congress still in a political stalemate. the house of representatives are taking the weekend off. when it comes to solving our debt problems, we know where both parties stand but what
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about the people who will have to live with the decisions? what do americans, average americans, want to see in a fiscal cliff deal? steve leisman here now with our exclusive results of the cnbc all-america economic survey. what do americans want, steve? >> what you would expect. free stuff, tyler. actually, no, we'll get into that in a second. first we want to show you results of our december cnbc all-america survey. what we asked about the fiscal cliff. the first thing we wanted to establish is do people know about this thing? we looked at some of the other times we've asked this. what we'll see right here is other situations where they knew it, where other main stories that were out there. for example, the trayvon martin shooting. 91% of americans knew about that. occupy wall street, 80%. going forward what you have here, facebook, 72%. all the way down to 70%. you can look at this a couple ways. here's the greek financial crisis. 30% of the public not really
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paying attention to. inside that 70% number, 36% have know a lot about it. we'll compare with other stuff we asked last time about when they had a debt -- big deficit debate. we find first, 17% back in november thought congress and the administration could come to a deal. now 44% say it is unlikely. current results -- 48%. put those two blue columns together. 48% to 44% is that a solution is likely. let's come over on this side and look at who believes that it is likely. when you break it down by party you get some interesting results. right here republicans, 52% say it is unlikely to 42%, i independents, 47%-43%. democrats are driving this number. when we look at the 48% on this
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side think it's likely, that's driven very much on the other side by the 60% of democrats. now what do people want? when we go to the wall for that, some interesting results here. what this is, this is net percent acceptable. if 50% think the idea's acceptable, 30% think it is unacceptable. that gives you a net 20%. what we find here is that raising taxes for those who make incomes of greater than $250,000, that's the most acceptable. why? the blue, net acceptable for democrats, pluts green acceptable for independents, with only a small percent red of net negative for republicans. the cap on deductions for those make $250,000 is the second most popular thing. even a cap on deductions for all is net positive for all three parties. everything else you go here as we go down the list, reducing military spending, reducing non-defense spending. all of that is negative. a slight positive on reducing non-defense spending for
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republicans. but then you take these last three. raising the retirement age, raising income taxes for everybody, raising medicare for spending. net negative for all three political factions. democrats, republicans, and independents. one thing you'll notice here quickly is that the red here, reducing military spending debt, is the most net negative for the republicans. even more negative than raisings taxes on all people. >> you know, i look at that. if i'm understanding it correctly, my initial reaction is, are americans just in a fantasy land over medicare spending? you can't get there unless you reduce medicare spending. >> i think that may be true. i think when we talk about leadership and political leadership taking risks, i think one of the things people have to do is politicians step forward and say, okay, here's the benefit and here's the cost. if weaver get there, we can start to poll that and ask people, will you pay "x" amount for this government service.
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that's really the question that's asked. we can ask people do you want to reduce medicare spending. they say no. would you want to reduce medicare spending if you have to p pay "x" thousands of dollars a year. that's what we're talking about. not the government service but the cost of the government service. jim iuorio, let's talk about these fiscal cliff expectations. are you seeing anything in this debate, jim, that you think of as investable, actionable, right now? >> well, sure. we tend to think of this as a binary event. either we come to a solution or don't come to a solution. i say that's not the case. there's three different things. one we come to a solution the market accepts and likes, one that it hates or we go over the fiscal cliff. one that the market hates and going over the fiscal cliff seem more likely to me. either one will be an economic drag. i like procter & gamble, big companies with good cash flow that are somewhat recession proof. >> thank you very much, jim
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iuorio. in the weeks before christmas, not a creature was stirring. not even the house. accept, of course, on twitter where one of the top trending words is cliffmas. in a fiscal cliffmas used in a tweet from the reformed broker, josh brown. according to the congressional daily, the hill, illinois senator dick durbin also jumped on the phrase this week, "21 days until christmas. 27 days until cliffmas. that's the fiscal cliff, december 31st." research in motion stock taking a hit this year. it fell 18%. the blackberry maker hopes its new platform due out in january will boost its brand. rim trading against the other smartphone makers right now -- apple is on the up side by 1.5% today. a big bounce back. rim is down a little bit by .66% and samsung up .5%. if we want te our schools...
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time for the poll results. tim cook says apple plans on moving some of its production to the u.s. 46% said it is an important statement. other companies should do the same. 35% said, okay, but it's more of a pr move than a major shift. 8% said i'll buy no matter where apple makes its products. 11% said forget apple. i buy samsung. let's see what's coming up on "street signs," 2:00 p.m. eastern time. brian? >> coming up next, sue, what you just talked about -- they are calling in sourcing, bringing jobs back. we have the great story of an appliance factory that's rehiring workers right here in the united states. a little company you might heard about called ge. plus it is apple plu alooza. we're going to address and discuss and debate apple's valuation and very cool, the star of "gold rush," todd
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hoffman, is going to be on. the fiscal cliff is actually impacting him. he's digging for gold harder than ever. he's our guest today on "street signs." i'm going to try to grow that beard in the next 20 minutes. highly unlikely but i will make my best effort. >> you are man enough to do it, baby. it's coming. here it goes. power rundown time, folks. john carney and bob pisani. we told you earlier, apple's tim cook telling nbc's brian williams the tech giant plans to spend $100 million on american manufacturing next year. we asked the question, is this tim cook trying to keep america great or more pr? >> i think it is great news. look, any kind of attempt to increase manufacturing is fine here but don't get too excited. remember when president obama met with steve jobs a couple years ago and said to him, what's it going to take to have the iphone made in the u.s.? he said those jobs are not coming back in that may and little more realistic. >> even if it is a pr stunt, it
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is great that apple feels the need to try to improve its image and thinks it can do it by having more jobs in america. if more companies follow this we may be able to restore some of our manufacturing base in the u.s. i hope so. >> let's talk about apple's real rifle and some would say enemy, samsung. is it the one to watch? droids gaining a lot of popularity. rumor circulating is that samsung's next generation galaxy smartphone, the one that's been at the heart of apple's patent suit with samsung, may have an unbreakable screen. what about samsung, john? >> look, i think that this product is very popular among people who i know. an unbreakable screen would be great. this is my screen. it is very broken on my iphone. these things are delicate little flowers. you drop them once or twice and you get shattered. the back of it you can see even worse. an unbreakable screen? great. >> great idea. that galaxy 3 is absolutely on
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fire. as a phone. i'll tell you what i'm holding out for, john. i hear that down the road they're going to have a flexible screen, a bendable screen. now you've got a real innovation going. i'd even consider switching on that. >> we haven't had a great improvement in screens in a while. this would be great. the company that used to be so hot, you could barely touch. now not. research in motion hoping corporate clients will hold on to their blackberries. rim offering a step by step program helping clients move up to a blackberry 10. smart business move or desperation? >> a little bit of both. i think it is a smart business move. people are fleeing this product and companies like to now say, look, bring your own phone and we'll program it. guess what? those aren't blackberries when people are doing that. blackberry needs to do something here. it is good to see her they're at least recognizing their problem. >> you know what else they're
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going to get, john? apps. more apps. something you can use. they'll hold your hand until you can get to the new platform. by the way, guys, the stock has doubled. it was $6. it is close to $12. >> i'm afraid of that rise. i'm not confident they've going to get a lot of apps. i talked to developers and they are not excited about the new blackberry. >> that's it. down to you, sue. the online business is next. it is a big business, as you know. our julia boorstin spoke exclusively to the ceo of spotify about the next big thing. that's next on "power lunch." i always wait until the last minute.
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cnbc's julia boorstin getting a big exclusive one on one interview with the ceo of spotify talking about the next big thing. can't wait, julia. >> well, sue, some new milestones for spotify today. it has 5 million subscribers to its $10 monthly service and 1 million of them are in the u.s. and 1 million have been added in just the past three months. the ceo saying it took rivals a decade to reach that million mark. the company saying it has paid half a billion dollars to argus record labels. the ceo and investors just unveiled some tools to navigate spotify's 20-million plus songs
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including a follow tab and a discover tab for recommendations based on everything from users' listening history to how old they were when a song came out. spotify is competing against some giants. mish soft's new xbox music, pandora, amazon, google and, of course, apple which is on track to launch a streaming subscription service early next year. the spotify says it has the advantage. >> there's two super trends going on right now. one of them is social and the other one is mold. we think that in order to be truly social, you got to start your company by being a social company. that's what we did. the other part is people just want their music everywhere. they don't want it just on their apple devices but they want it on their home stereos and their samsung cell phones and many other places. >> here's what sean parker who's a board member and also an investor in spotify said the company's real competition is. >> we really compete with
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piracy. we compete with the vast majority of music fans who are actually still using piracy networks and we offer a legitimate solution that's significantly more convenient than piracy and i would say significantly more convenient than itunes. >> another announcement today, spotify is now offering all of metallica's music. sue, back over to you. >> thanks, julia. i'll turn it over to ty. enough energy from wind to power the entire many times over? it is not the latest sci-fi flick. some experts say it is a real possibility but the industry faces a possible setback. its controversial tax credit could go over the fiscal cliff. >> when swind placed on the surface of the earth, you can get something like 20 times the amount of power that civilization now uses. >> reporter: ken caldera authored a new study that claims
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wind is the way. >> the wind you can't power civilization on wind today has to do with economics and engineering. >> reporter: he points for history. >> one of the reasons why fossil fuels are cheap is that they have received large subsidies from the federal government. >> reporter: right now wind power gets a subsidy, too. $1 billion a year from uncle sam. but that could vanish december 31st when the country hits the fiscal cliff. to caldera, that's the short-run risk. in the long run, he sees a clear, if not political pristine, path to more reliance on wind power. >> i think we'll eventually get to the point where we see a need for technologies that can provide energy, essentially forever, with minimal environmental cost. >> a final check on the markets when we return after this. ♪
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